JGB futures inch up as Tokyo stocks slip

TOKYO, Oct 27 - Japanese government bond futures inched up on Tuesday, bouncing back from a 2-½ month low, as an advance by Tokyo stocks was tempered by losses on Wall Street.

* JGB gains were limited following a retreat by U.S. Treasuries. Treasury prices fell sharply on Monday, with the benchmark 10-year note yield climbing to a two-month high, as investors gasped at another record round of new debt sales and fretted over the possible timing of a Federal Reserve reversal from its easy monetary policy.

* December 10-year JGB futures gained 0.07 point to 138.06 after hitting 137.91, their lowest since Aug. 14.

* The five-year yield dipped 0.5 basis point to 0.685 percent after rising to a 2-½ month high of 0.695 percent on Monday.

* The 20-year yield was unchanged at 2.145 percent.

* Tokyo's Nikkei average retreated 0.9 percent from the previous day's four-week closing high, dented as exporters fell on Wall Street's losses.